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Reserve federal bank of Dallas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 Circular No. 71-137 June 15, 1971 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the f o llo w in g sta te m e n t giving details of tw o issues o f Treasury bills: T he Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount o f $3,800,000,000, or thereabouts, for cash and in exchange lor Treasury bills maturing June 24, 1971, in the am ount of $3,705,060,000, as follows: 91-D A Y B IL L S (to m aturity date) to be issued June 24, 1971, in the am ount of $2,200,000,000, or thereabouts, representing an additional amount of bills dated March 25, 1971, and to mature Septem ber 23, 1971 (C U S IP No. 912793 L K 0 ), originally issued in the am ount of $1,601,780,000, the additional and original bills to be freely interchangeable. 182-D A Y B IL L S for $1,600,000,000, or thereabouts, to be dated June 24, 1971, and to mature D ecem ber 23, 1971 (C U S IP No. 912793 L X 2 ). T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without interest. T hey w ill be issued in bearer form only, and in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D a yligh t Saving T im e, M onday, June 21, 1971. Tenders will not be received at the Treasury Departm ent, W ashington. Each tender m ust be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcem ent will be made by the Treasury D epartm ent of the am ount and price range of accepted bids. O nly those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Sub ject to these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for a ccepted tenders in accordance with the bids m ust be made or com pleted at the Federal Reserve B ank on June 24, 1971, in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing June 24, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustm ents w ill be made for differences betw een the par value of matur ing bills accepted in exchange and the issue price of the new bills. Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance cbm panies) issued here under m ust include in his incom e tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. In accord ance with the a b o v e an n o u n c em en t, tenders will b e received at this b ank a n d its branches at El Paso, Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , June 21, 1971. Tenders m ay not to b e entered by te le p h o n e . Yours very truly, P. E. Cold well w_ Ha ^ a (r^ President LAST PREVIOUS OFFERING OF TREASURY BILLS Am ount, Range and Approxim ate Y ield of A ccepted Tenders 91-D ay B ills 182-D ay B ills D u e Septem ber 16, 1971 D u e D ecem ber 16, 1971 $3,094,510,000_________________________________ T otal A pplied For_________________________________ $2,395,275,000 $2,100,055,000 T otal A ccepted------------------------------------------------------$1,400,000,000 P rice Y ield Price Y ield 98.766 4.882% __________________________ -High________________ 97.446______ 5.052% 98.725 5.044% ___________________________ Low_______________________ 97.347_____________5.248% 98.739 ,4.989% ( 1 ) -------------------------------- Average---------------------------------97.371________ 5.200% ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 5.14% for the 91-day bills and 5.43% for the 182-day bills. (S e e reverse for tender form ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing September 23, 1971 Dated March 25,1971 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The________________________ Branch El Paso 79999 Houston 77001 San Antonio 78206 (D a te ) Pursuant t the provisions of Treasury Department Circular No. 418 (current r v s o ) and the provisions of the o eiin p b i announcement issued by the Treasury Department, the undersigned o f r t purchase Treasury b l s i the amount ulc fes o il n shown below, and agrees t pay for the amount a l t e , on or before the i s e d t , by the method and at the r i d c t d o lotd su ae ate n i a e . NONCOMPETITIVE TENDER $ ________________________________ JNOT TO EXCEED $200,000 Noncompetitive tenders f r $200,000 or l s from any one b d e , without stated p i e w l be accepted i f l a the average o es idr rc, il n ul t p i e ( n three decimals) of accepted competitive b d . rc i is Prices should be ex pressed on the basis of 1 0 with not more than 0, COMPETITIVE TENDERS $ @ three decimal places, e g, 9 . 2 . Fractions . . 995 @ must not be us d e. $ I$ TENDERS M A Y NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Payment for t i i s e of b l s cannot be made by hs su il N um ber of c e i t Treasury Tax and Loan Account. rdt o M a tu rity V alue pieces METHOD OF PAYMENT @ $ 10,000 $_ @ $ @ $ □ 15,000 $_ 50,000_$_______________ □ By maturing bills held by------------------------------------------Payment to be made by------------------_ @ $ 100,000 $_______________ □ Charge our reserve account on payment date | | Draft enclosed (E ffectual delivery o f enclosed d r a ft @ $ 500,000 $_______________ @ $1,000,000 $----------------------- Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to_ shall be on la te st day which will p e rm it p re s e n tm e n t in o rd e r to o b ta in irrevocably collected fu n d s on p a y m e n t d a te ) (S u b sc rib e r’s full n am e o r c o rp o ra te title) (A dd ress) By- (A u tho rized official s ig n a tu re a n d title ) ( F o r th e acco u n t of, if te n d e r is fo r a n o th e r sub scrib er) (A d dress) IMPORTANT 1 No tender for l s than $10,000 w l be considered and each tender over $10,000 must be for an amount i multiples of . es il n $ , 0 (maturity v l e . 500 au) 2 Tenders should be forwarded i an envelope c e r y addressed t t i bank or appropriate branch as Fis a Agent of the . n lal o hs cl United S a e , with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes tts received with t i legend w l not be opened u t l a t r the c o i g time s e i i d i the p b i announcement, communi hs il ni fe lsn pcfe n ulc c t o s r l t n t other matters should not be e c o e . Envelopes for submitting tenders may be obtained from t i ain eaig o nlsd hs bank or appropriate branch. 3 Any q a i i d or c n i i n l tender w l be r j c e . . ulfe odtoa il eetd 4 I a corporation makes the t n e , the form should be signed by an o f c r o the corporation authorized t make the . f edr fie f o tender and the signing of the form by an o f c r o the corporation w l be construed as a representation by him that he fie f il has been s autho i e . I the tender i made by a partnership i should be signed by a member of the f r , who o rzd f s t im should sign i the form “-------------------- acopartnership, by---------------------------- . - 1 n a member of the f r . im” 5 Tenders from those other than incorporated banks and t u t companies or responsible and recognized dealers i invest . rs n ment s c r t e w l be disregarded, unless accompanied by a deposit o 2 percent of the t t l amount (maturity value) euiis il f oa of the Treasury b l s applied f r or unless the tenders are accompanied by an express guaranty o f l payment by an il o, f ul incorporated bank or t u t company. rs 6 I the language o t i form i changed i any r s e t which, i the opinion of the Secretary of the Treasury i . f f hs s n epc, n s m terial, the tender may be disregarded. a (See reverse for announcement)